How are today's accounting firms harnessing technology and AI to enhance efficiency and streamline operations? What are the cutting-edge trends in cloud-based accounting, and how can these strategies be effectively implemented in your firm?

Welcome back to Strategy and the Virtual Controller! Penny Breslin and Damien Greathead dive into cloud accounting, firm management, workflows, and the intentional building of businesses. In this episode, recorded live at QuickBooks Connect in Las Vegas, they’re joined by Dawn W. Brolin, CPA, CFE, and they are later joined by Sharmila Raj Kumar and Nirmala Lakshminarayanan from MoneyPenny, LLC in Chennai. 

With Dawn, they discuss the importance of adaptability and setting clear goals for business growth. Dawn shares her experiences with the challenges of running a successful accounting firm, from payment models to dealing with client expectations, and the nuances of providing actionable, honest advice.

They also discuss the broader picture of the accounting industry, highlighting key trends such as AI integration, cybersecurity, and the shift towards more personalized client services. Sharmila and Nirmala discuss their experience at the conference, particularly their insights on managing client communication, workflow optimization, and embracing technological advancements.

Dawn Brolin, CPA and CFE, is the CEO of Powerful Accounting, LLC, focusing on accounting, tax, fraud services, and QuickBooks consulting. An author, motivational speaker, and trainer, she has worked with entities like Intuit and MSNBC. Recognized consistently among the "Top 25 Most Powerful Women in Accounting," Dawn has also been named a “Top 10 Managing Partner Elite” and a “Top 40 Under 40.” Her dynamic approach has led to media appearances and speaking roles at key conferences.

[00:00 - 06:41] From Bookkeeping to Business Growth with Dawn of Powerful Accounting, LLC

• Dawn shares her journey from starting as a bookkeeper to becoming a CPA and moving into tax advisory and consultancy work. She shares some challenges and growth in her career.
• Business growth is a personal journey. Running an accounting firm requires ongoing adjustment and self-reflection. 
• We discuss how Dawn handles the challenges of implementing a subscription business model, managing scope creep, and client expectations.
• It’s important to value your expertise and not feel guilty to charge for your knowledge.

[06:41 - 17:40] Navigating Scope Creep, Liability, Audits, and Effective Client Management

• The challenges of scope creep in accounting, and how to cover areas such as liability and unforeseen events like IRS audits.
• It's important to set clear expectations around E&O insurance coverage, especially when advising on forecasting, budgeting, and insurance policies.
• Dawn elaborates on pricing strategies for complex accounting situations like IRS audits, and how to determine when services are out of the typical scope.
• Proactive client communication in financial decision-making is key! Especially in situations like capital purchases or business investments.
• We discuss implementing a subscription-based pricing model tailored to individual client needs, including consultation time.
• Asses the kind of lifestyle you want from your business: Do you want 100 low-scope and low-paying clients, or 20 high-scope and higher-paying clients?

[17:41 - 28:41] Reflections from QuickBooks Connect Las Vegas

• We welcome Sharmila Raj Kumar and Nirmala Lakshminarayanan from MoneyPenny, LLC who are managing the Chennai operation.
• They share their experience at Quickbooks Connect 2023 and their highlights and learnings. 
• Sharmila shares her learnings from nonprofit workflows and utilizing AI in accounting practices to save time. 
• Nirmala discusses what it’s been like talking to other firm owners and learning about cultural differences.  
• Soft skills are vital for running a business. Don’t just focus on acquiring technical know-how.  

[28:42 - 43:42] Embracing AI, Global Workforce Trends, and Redefining Growth in Accounting

• Penny and Damien reflect on the QuickBooks Connect conference.
• They discuss the valuable internal management sessions for firm owners, encouraging attendees to think like business owners rather than just accountants.
• Growth is subjective and can be defined by the individual firm.
• Penny shares how many attendees are not utilizing AI to its full potential.
• There’s still plenty of room to integrate AI for tasks like journal entries, freeing up time for advisory roles or personal life.
• Damien talks about the cost-effectiveness of growing existing customers over acquiring new ones.
• Damien and Penny notice the trend towards a global workforce and remote team members.

Connect with Dawn

Dawn W. Brolin, CPA, CFE – Chief Executive OfficerChief Executive Officer at Powerful Accounting

Check out her books The Designated Motivator and The Designated Motivator for Accounting Professionals  

Tweetable Quotes

“My results are your success.  As I'm trying to help you save taxes, I'm trying to help you run your business; Your end result is success.” – Dawn W. Brolin, CPA, CFE

“You have to learn how to change... I am somebody who doesn’t want the same day every day." – Dawn W. Brolin, CPA, CFE

“You can harvest clients from your current clients. And you can let some of them go... But the pressure of massive marketing campaigns goes away if you only want 20." – Penny Breslin

"That's what AI is for, you don't have to do that. The amount of time that you save by not doing it is valuable time that can be given over to advisory." – Penny Breslin 

Damien Greathead and Penny Breslin

"It's an exciting time to be in accounting, but it's up to you to redefine what your business is." – Damien Greathead

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Websites: https://moneypennyllc.com/

LinkedIn: https://www.linkedin.com/in/damiengreathead/

Twitter: @Damien_GH

LinkedIn: https://www.linkedin.com/in/penny-breslin-0228b81/

Twitter: @pennyb57